ÊJust about everyone with a 401(k) pension plan or mutual fund has money invested in companies that are doing business in so-called rogue states.

ÊÊIn other words, there are U.S. companies that are helping drive the economies of countries like Iran, Syria and Libya that have sponsored terrorists. Correspondent Lesley Stahl reports. "The revenue that is generated from the work that these companies are doing, we believe, helps to underwrite and support terrorism, says William Thompson, the New York City comptroller who oversees the $80 billion in pension funds for all city workers.

ÊHes actually identified specific companies that have invested in these rogue countries, including Halliburton, Conoco-Phillips and General Electric. And he points out that New York's pension funds own nearly a billion dollars worth of stock in these three Fortune 500 companies, which have operations in Iran and Syria.

ÊÊWhat was Thompsons reaction when he found out about this? Anger that there were companies that could be contributing to attacks on our nation, he says. Youd think to yourself, well, why would they do that? I didn't think they could. And more than anything it was, you thought, that the law prevented them from doing this. In fact, U.S. law does ban virtually all commerce with the rogue nations, but there's a loophole that G.E., Conoco-Phillips and Halliburton have exploited: The law does not apply to any foreign or offshore subsidiary so long as it is run by non-Americans.

These three companies, as far as we were concerned, appear to have violated the spirit of the law, says Thompson. In the case of Halliburton, as an example, they have an offshore subsidiary in the Cayman Islands. That subsidiary is doing business with Iran.

60 Minutes decided to ask Halliburton's subsidiary about its work in Iran. But we weren't allowed to enter the building with a camera. So we went in with a hidden camera, and were introduced to David Walker, manager of the local Calidonian Bank, where the subsidiary is registered.

ÊÊ60 Minutes was expecting to find a bustling business, but, to our surprise, Walker told us that while Halliburton Products and Services was registered at this address, it was in name only. There is no actual office here or anywhere else in the Caymans. And there are no employees on site.

ÊÊWe were told that if mail for the Halliburton subsidiary comes to this address, they re-route it to Halliburton headquarters in Houston.

Halliburton says its Cayman Island subsidiary is actually run out of Dubai. 60 Minutes went there and learned that it shares office space, phone and fax lines with a division of its U.S.-based parent company -- which raises more legal questions about its independence from Houston. But once again, our inquiries went unanswered.

ÊIf the intent was to try and prevent United States-based companies from doing business in these "rogue" nations, then it appears as if they've gotten around what the law had intended, says Thompson, who filed a shareholders resolution calling on the company to review and justify its operations in Iran. Halliburton attempted to block the shareholder resolution. They went to the SEC and asked for permission not to put this before shareholders.

ÊÊDid the SEC take it up and rule on it?

ÊÊOh, absolutely. The SEC ruled against Halliburton and said that it had to be put in front of the shareholders, says Thompson, who plans to file the resolution at the next shareholders meeting in April.

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This would be the same Halliburton that Cheney claims he has no links with anymore.

Quote

Lautenberg said $205,298 was paid to Cheney in deferred salary by Halliburton in 2001, and $162,392 last year. Lautenberg said Halliburton stock options held by Cheney were 100,000 shares at $54.50 per share, 33,333 shares at $28.125 and 300,000 shares at $39.50 per share.

Ah yes. I suspect as much about most 'offshore subsidiaries'. They aren't much more than an office and someone to answer the phone and forward the mail. Good to know Halliburton supports terrorism as much or more than pot smokers. I guess the best result for them is that their 'expertise' in combat support operations is always needed. If that means they have to work both sides in a conflict, so be it apparantly.

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